Resources Connection reported fourth-quarter fiscal 2026 revenue of $106.1 million and full-year revenue of $452.0 million, with GAAP net loss narrowing to $16.1 million in the quarter and $40.6 million for the year. The company posted a fourth-quarter gross margin of 37.6% and full-year gross margin of 37.5% while adjusted EBITDA was $(0.6) million for the quarter and $5.0 million for the year. Management cited continued soft demand for traditional operational accounting roles, longer consulting sales cycles and strategic investments in AI and segment refocusing.

Financial Highlights

  • Revenue: $106.1 million for Q4 fiscal 2026; $452.0 million for fiscal 2026 (down from $139.3M Q4 prior year and $551.3M prior year).
  • Gross profit: Q4 gross margin 37.6% (Q4 prior year 40.2%); full-year gross margin 37.5% (prior year 37.6%).
  • Operating / loss from operations: Loss from operations of $(15.8) million for Q4; $(38.3) million for the full year (GAAP figures shown in consolidated statements).
  • Net loss: Q4 net loss $16.1 million (net loss margin 15.1%); full-year net loss $40.6 million (net loss margin 9.0%).
  • Adjusted metrics: Adjusted EBITDA of $(0.6) million for Q4 (Adjusted EBITDA margin (0.6)%); Adjusted EBITDA of $5.0 million for fiscal 2026 (Adjusted EBITDA margin 1.1%).
  • Adjusted diluted (loss) per share: Q4 adjusted diluted loss per share $(0.07); full-year adjusted diluted loss per share $(0.06).

Business Highlights

  • Segment performance: On-Demand Talent revenue declined (Q4 $40.4M vs $53.0M prior year) driven by lower billable hours and softer demand for traditional finance roles as clients adopt AI and automation.
  • Consulting momentum: Consulting revenue decreased (Q4 $36.6M vs $51.0M prior year) with billable hours down and longer sales cycles for larger, complex projects; average consulting bill rate improved, reflecting higher-value projects and pricing discipline.
  • Geographic mix: Europe & Asia Pacific experienced weakness (Q4 $17.1M vs $21.3M prior year) with a shift toward Asia Pacific lowering average bill rates; North America and Asia performance broadly as expected per management commentary.
  • Strategic actions: Company sold Sitrick on May 2, 2026 and made focused investments to refocus On-Demand Talent offerings, scale Consulting, pursue AI opportunities and streamline operations to align cost structure with revenue.
  • Workforce and utilization: Billable hours declined materially (Q4 billable hours down 20.9% year-over-year; fiscal year billable hours down 17.5%), and average consolidated bill rate modestly declined to $121 (Q4), while U.S. average bill rate showed improvement.

Original SEC Filing:

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